Haters make a big deal of it, risky, because of the misleading REUTERS headline (probably carefully crafted by an interested party) and the need of hedge funds and shorts to use any and everything available to create fear, doubt and uncertainty and grab shares as cheaply as possible. It's just a headline with the words 'replace FnF'.
You can bet there will be several million shares sold at open tomorrow to try to create panic selling, but I think it's likely to turn into a bear trap, and reversal of fortunes for sellers.
The reality is this is just a company created to help FnF develop a uniform and cooperative method of securitizing a new type of paper that will allow private capital to participate on a limited basis (about 10% of risk) in certain specific types with LOWER ratings and HIGHER returns for investors.
The real news here is that FnF cannot be replaced and everyone, including congress, has finally figured that out. IF, decades from now a new model rises up to ENCOURAGE reluctant private capital to SHARE a significant amount of risk (significant = 50%) with the government/taxpayers THEN there may be significant GRADUAL changes in the secondary market which will most likely benefit EVERYONE including FnF.
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